Revised duty drawback rate to hurt Tirupur's knitwear exporters

According to members of industry, reduction in drawback rate is a death knell for Tirupur's garment export sector

The Central Board of Excise and Customs' (CBEC's) decision to revise the duty drawback rate from 7.6 per cent to two per cent and reduce the value cap does not augur well for the knitwear exporters in Tirupur, Tamil Nadu.

The reduction in drawback rate for knitwear exporters is a death knell for Tirupur's garment export sector and has come as a shock to exporters who are already facing severe competition in the global market, said Raja M Shanmugham, president, Tirupur Exporters Association.

He added that once buyers go out of the country due to higher prices, it is very difficult to